Question
I ran out of steam on ROE for WAYFAIR INC, can you please add more explanation to this: Return on Equity (ROE) -Dupont Ratio- ROE
I ran out of steam on ROE for WAYFAIR INC, can you please add more explanation to this:
Return on Equity (ROE) -Dupont Ratio-
ROE = Profit Margin x Asset Turnover x Financial leverage
With this being said Wayfair INC ROE for year 2017 is 506%
Wayfair INC ROE for year 2016 is 245%
I canonly thinkof explanation as this:
The DuPont ratio is a fundamental performance measurement to understand Wayfair's operating efficiency, asset use efficiency and financial leverage. This number is significant because it creates the overall value for stakeholders. Because the number has increased considerably from 2016 to 2017 this is a good thing and means Wayfair is being managed well.
But I need more details information on comparison year 2016 and 2017 of Wayfair INC ROE.
Thanks
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